Caltex Australia (CTX)

UBS has reiterated its “neutral" rating and $10.46 target price on
Caltex Australia
, after the company released updated refiner margin figures.

Asia’s refineries are in the midst of maintenance season, which has provided some support to Australian refinery margins. August’s refiner margin came in at $US8.97 a barrel, taking the average second-half margin to date to $US7.20 a barrel.

UBS analysts say the numbers are 15 per cent lower than the same period last year, but still 15 per cent higher than the first half FY11 margin of $7.82 a barrel and in line with expectations. The relatively high spread between Brent and Dubai crude pricing is likely to put further pressure on margins.

The company is currently performing a strategic review of the business and analysts suggest the review implies Caltex “is evaluating product source options for a potential exit from its loss making refining business in order to refocus its capital resources on its marketing business."